Japan auto stocks soar on report of lower tariffs — Toyota jumps over 15%

• The new levy is lower than the previously announced 25% tariff on all imported vehicles to the U.S.
• Japan's Honda stock jumped more than 11%, while Toyota surged over 15%.
• Shares of South Korean carmaker Hyundai and Kia also rose on the announcement.

Shares of Japanese automakers surged after Japanese Prime Minister Shigeru Ishiba said that U.S. auto tariffs were lowered to 15% from the current 25%, Reuters reported.

Japan's Honda stock jumped more than 11%, while Toyota surged over 15%. Nissan jumped over 9%, and Mazda Motor surged over 17%. Mitsubishi Motors popped over 13%.

Shares of South Korean carmaker Hyundai also rose 7% on the announcement, while Kia was up 6.75%.

The original 25% tariff was halved to 12.5%, before adding a 2.5% “Most Favored Nation” base tariff, taking the total to 15%, according to a Google translation of a report by Japan's public broadcaster NHK.

U.S. President Donald Trump previously announced a 25% tariff on all imported vehicles on March 26, which went into effect on April 2.

Auto exports accounted for 28.3% of all Japanese shipments to the U.S. in 2024, according to customs data, making it a cornerstone of Tokyo's economy.

Recent data from the trade ministry showed that Japan's exports of automobiles, which include cars, buses and trucks, had taken a hit. The country's automobile exports to the U.S. fell 26.7% in June following May's 24.7% plunge.

While this is “very good news” for Japanese automakers, the country's auto industry faces other challenges, said Ed Rogers, CEO of Rogers Investment Advisors, who cited competition from Chinese and South Korean carmakers.

“But this does provide some very needed short-term assurance that U.S. tariffs will be manageable.”

U.S. President Donald Trump announced Tuesday stateside that he had struck what he called the “largest Deal ever” with Japan, featuring 15% “reciprocal” tariffs on Japanese exports to the U.S.

Posting on Truth Social, Trump also claimed that Japan would invest $550 billion into the U.S., and that America would receive “90% of the Profits.”

He added that Japan also agreed to open its market to a broader range of U.S. goods, including automobiles, trucks, rice, and other agricultural products.